Foundation hands UGA Adams' cut

Posted: Saturday, October 16, 2004

By Ross Markmanross.markman@onlineathens.com

The University of Georgia Foundation voted Friday to contribute $303,667 to UGA's general fund - a move foundation trustees suggested marks the end of a months-long dispute with the state Board of Regents.

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The foundation, a non-profit, private organization that manages UGA's endowment, had been locked in a squabble with regents over the payment of supplementary compensation to UGA President Michael Adams.

The $303,667 will go toward the university's general fund, but indirectly will be used to fund Adams' salary supplement. The regents, who oversee the 34-campus University System of Georgia, are expected to approve an allocation of the same amount from the UGA general fund to pay for Adams' salary supplement.

The president receives the compensation in addition to his state-paid salary of $234,799.

Former foundation trustee Jimmy Blanchard, who negotiated over the last few months with regents, advised trustees to comply with the regents' edict to give the money directly to the university. In the past, the foundation had paid the supplement directly to Adams.

Blanchard's advice came two months after regents canceled an order that UGA sever ties with the foundation, its primary fund-raiser. As part of the reconciliation, the foundation now will contribute the former supplement - which had been paid directly to Adams - to the university.

Foundations at Georgia State University, Georgia Tech and the Medical College of Georgia, as well as three smaller schools, will operate under the same agreement with the regents.

The transfer of the privately raised funds will add $1.48 million to university system payrolls but, if all foundations cooperate, the presidential pay won't cost the state any additional money.

Friday's approval only applies to the current fiscal year, which ends June 30, Blanchard said Friday. The UGA Foundation will have to vote in subsequent years to approve a contribution amount, although Blanchard said the ultimate hope is all presidential compensation will be covered by state dollars.

The move for the UGA Foundation marked perhaps the final chapter of a conflict that started in June 2003 when Adams elected not to renew longtime athletic director Vince Dooley's contract.

A month later, foundation trustees commissioned an audit of Adams' spending, the report of which was released a year ago and charged Adams with misusing thousands of donor dollars - a charge Adams vehemently denied.

The foundation still will provide Adams certain perks, including a vehicle allowance for both him and his wife, as well as memberships to certain civic and country clubs. The state is not allowed to do so.

Earlier this month, the foundation's executive committee voted to contribute to the general fund $325,000 as a sign of good faith to the regents. Trustees decided Friday to avoid confusion that all of the money would go toward Adams' supplement, and instead deposit only the $303,667.